
Set Those Investment Goals and Stick to Them
It’s easy to chase the wrong deal. The price will seem impossibly low or the property will already be occupied with what you believe to be stellar tenants. Always dig a little deeper and don’t run after what doesn’t fit your investment goals. If you don’t have investment goals already established, that’s your starting point. Before you can start looking at dream properties and determining how you’ll put together your financing, you need to know what you’re doing and why. It’s pretty similar to putting together a business plan, and what you have to remember is that when you invest in rental properties, you’re essentially running a business. Put together and prioritize the following:-
- Cash flow requirements.
- Expected appreciation for your property value.
- Scope of your investments; do you want to buy a single unit, a bunch of units, or an entire building?
- How long do you plan to invest and what’s your exit strategy?
Get Your Financing Together
There are likely plenty of properties out there you’re ready to make a move on. But, you need to have your financing in order first. Financing is an early part of the equation, and it’s another detail that should be informed by your investment goals. Some of the questions you should ask before acquiring a rental property or finding the means to pay for it are:-
- How much do you have for a down payment? You should plan on having at least 20 percent in cash set aside.
- What will you do to finance the rest of the purchase? You can go the traditional mortgage route or work with hard money lenders. Lots of other opportunities exist for creative financing, but you’ll have to figure out what kind of risk you’re comfortable with.
- Do you have the available cash to spend on things like repairs, vacancy, and marketing?
Prepare for the Costs Involved in Palm Springs Investment Properties
Investing in rental real estate anywhere comes with fixed and variable costs. You can plan on mortgage payments, property insurance, property taxes, and routine and preventative maintenance. What surprises most new investors are those expenses that they did not see coming. Vacancy. Turnover. Emergency maintenance. Evictions. Property damage. You’ll need to budget for even the costs you haven’t thought of yet. Work with a CPA or a good tax accountant who can explain exactly what you can expect to pay as a real estate investor in California. You’ll also want to understand your tax benefits, because even though you’ll have to pay taxes on your rental income, there are many ways to reduce your tax exposure when you’re renting out property.Partner with Palm Springs Property Managers

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- What the rental range might be for the property you’re considering.
- What kind of upgrades and updates may be necessary before it’s ready for the rental market.
- How much you can expect to spend on maintenance, based on the home’s condition and age.
- What your tenant population will likely be for the home you’re considering.